IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v283y2019i1d10.1007_s10479-017-2452-0.html
   My bibliography  Save this article

Understanding risk management for intentional supply chain disruptions: risk detection, risk mitigation, and risk recovery

Author

Listed:
  • Scott DuHadway

    (Portland State University)

  • Steven Carnovale

    (Portland State University)

  • Benjamin Hazen

    (Air Force Institute of Technology)

Abstract

Strategies to mitigate supply chain risk tend to treat disruptive events as homogenous, despite having different causes and requiring different risk management strategies. We develop a framework to understand effective risk management strategies by considering whether a disruption was caused by an intentional or inadvertent act and whether the source of the disruption was endogenous or exogenous to the supply chain. Based on exploring evidence from risk management strategies for specific disruptions, we find that risk detection is important for both intentional and inadvertent disruptions, while effective risk management practices differ in terms of risk mitigation (relational versus process based approaches) and risk recovery (restructuring versus resilience). The resultant theory-based framework provides a new theoretical perspective on supply chain disruptions and posits that understanding intent and the source of the disruption is critical for appropriate risk management strategies.

Suggested Citation

  • Scott DuHadway & Steven Carnovale & Benjamin Hazen, 2019. "Understanding risk management for intentional supply chain disruptions: risk detection, risk mitigation, and risk recovery," Annals of Operations Research, Springer, vol. 283(1), pages 179-198, December.
    • Handle: RePEc:spr:annopr:v:283:y:2019:i:1:d:10.1007_s10479-017-2452-0
    DOI: 10.1007/s10479-017-2452-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-017-2452-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-017-2452-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven Carnovale & Sengun Yeniyurt, 2015. "The Role of Ego Network Structure in Facilitating Ego Network Innovations," Journal of Supply Chain Management, Institute for Supply Management, vol. 51(2), pages 22-46, April.
    2. Francis D. Tuggle & Donald Gerwin, 1980. "An Information Processing Model of Organizational Perception, Strategy and Choice," Management Science, INFORMS, vol. 26(6), pages 575-592, June.
    3. Benjamin T. Hazen & Chetan Sankar, 2015. "Cross-Border Process Innovations: Improving the Fit Between Information Processing Needs and Capabilities," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 12(03), pages 1-26.
    4. Mengshi Lu & Lun Ran & Zuo-Jun Max Shen, 2015. "Reliable Facility Location Design Under Uncertain Correlated Disruptions," Manufacturing & Service Operations Management, INFORMS, vol. 17(4), pages 445-455, October.
    5. Garvey, Myles D. & Carnovale, Steven & Yeniyurt, Sengun, 2015. "An analytical framework for supply network risk propagation: A Bayesian network approach," European Journal of Operational Research, Elsevier, vol. 243(2), pages 618-627.
    6. Gosling, J. & Purvis, L. & Naim, M.M., 2010. "Supply chain flexibility as a determinant of supplier selection," International Journal of Production Economics, Elsevier, vol. 128(1), pages 11-21, November.
    7. Salop, Steven C & Scheffman, David T, 1983. "Raising Rivals' Costs," American Economic Review, American Economic Association, vol. 73(2), pages 267-271, May.
    8. Choi, Thomas Y. & Budny, Jaroslaw & Wank, Norbert, 2004. "Intellectual property management: a knowledge supply chain perspective," Business Horizons, Elsevier, vol. 47(1), pages 37-44.
    9. Jie Xu & Jun Zhuang & Zigeng Liu, 2016. "Modeling and mitigating the effects of supply chain disruption in a defender–attacker game," Annals of Operations Research, Springer, vol. 236(1), pages 255-270, January.
    10. Brian Tomlin, 2006. "On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks," Management Science, INFORMS, vol. 52(5), pages 639-657, May.
    11. Nader Azad & Georgios Saharidis & Hamid Davoudpour & Hooman Malekly & Seyed Yektamaram, 2013. "Strategies for protecting supply chain networks against facility and transportation disruptions: an improved Benders decomposition approach," Annals of Operations Research, Springer, vol. 210(1), pages 125-163, November.
    12. Volodymyr Babich & Christopher S. Tang, 2012. "Managing Opportunistic Supplier Product Adulteration: Deferred Payments, Inspection, and Combined Mechanisms," Manufacturing & Service Operations Management, INFORMS, vol. 14(2), pages 301-314, April.
    13. Kunreuther, Howard & Heal, Geoffrey, 2003. "Interdependent Security," Journal of Risk and Uncertainty, Springer, vol. 26(2-3), pages 231-249, March-May.
    14. Jay R. Galbraith, 1974. "Organization Design: An Information Processing View," Interfaces, INFORMS, vol. 4(3), pages 28-36, May.
    15. Bates, Hilary & Holweg, Matthias & Lewis, Michael & Oliver, Nick, 2007. "Motor vehicle recalls: Trends, patterns and emerging issues," Omega, Elsevier, vol. 35(2), pages 202-210, April.
    16. Yossi Sheffi, 2005. "The Resilient Enterprise: Overcoming Vulnerability for Competitive Advantage," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262693496, December.
    17. Lee, Hau L. & Whang, Seungjin, 2005. "Higher supply chain security with lower cost: Lessons from total quality management," International Journal of Production Economics, Elsevier, vol. 96(3), pages 289-300, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. El Baz, Jamal & Ruel, Salomée, 2021. "Can supply chain risk management practices mitigate the disruption impacts on supply chains’ resilience and robustness? Evidence from an empirical survey in a COVID-19 outbreak era," International Journal of Production Economics, Elsevier, vol. 233(C).
    2. Cinciulescu Dumitru, 2023. "Theoretical And Methodological Approaches On Risk Management In Organisations," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 194-198, December.
    3. Fattahi, Mohammad & Govindan, Kannan & Maihami, Reza, 2020. "Stochastic optimization of disruption-driven supply chain network design with a new resilience metric," International Journal of Production Economics, Elsevier, vol. 230(C).
    4. Amulya Gurtu & Jestin Johny, 2021. "Supply Chain Risk Management: Literature Review," Risks, MDPI, vol. 9(1), pages 1-16, January.
    5. Manupati, V.K. & Schoenherr, Tobias & Ramkumar, M. & Panigrahi, Suraj & Sharma, Yash & Mishra, Prakriti, 2022. "Recovery strategies for a disrupted supply chain network: Leveraging blockchain technology in pre- and post-disruption scenarios," International Journal of Production Economics, Elsevier, vol. 245(C).
    6. Nader Azad & Elkafi Hassini, 2019. "A Benders Decomposition Method for Designing Reliable Supply Chain Networks Accounting for Multimitigation Strategies and Demand Losses," Transportation Science, INFORMS, vol. 53(5), pages 1287-1312, September.
    7. M. J. Hermoso-Orzáez & J. Garzón-Moreno, 2022. "Risk management methodology in the supply chain: a case study applied," Annals of Operations Research, Springer, vol. 313(2), pages 1051-1075, June.
    8. Aldrighetti, Riccardo & Battini, Daria & Ivanov, Dmitry & Zennaro, Ilenia, 2021. "Costs of resilience and disruptions in supply chain network design models: A review and future research directions," International Journal of Production Economics, Elsevier, vol. 235(C).
    9. Azad, Nader & Hassini, Elkafi, 2019. "Recovery strategies from major supply disruptions in single and multiple sourcing networks," European Journal of Operational Research, Elsevier, vol. 275(2), pages 481-501.
    10. Ivanov, Dmitry, 2020. "Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 136(C).
    11. Xiang Li, 2017. "Optimal procurement strategies from suppliers with random yield and all-or-nothing risks," Annals of Operations Research, Springer, vol. 257(1), pages 167-181, October.
    12. Tang, Liang & Jing, Ke & He, Jie & Stanley, H. Eugene, 2016. "Robustness of assembly supply chain networks by considering risk propagation and cascading failure," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 459(C), pages 129-139.
    13. Liying Mu & Milind Dawande & Xianjun Geng & Vijay Mookerjee, 2016. "Milking the Quality Test: Improving the Milk Supply Chain Under Competing Collection Intermediaries," Management Science, INFORMS, vol. 62(5), pages 1259-1277, May.
    14. Long He & Ying Rong & Zuo‐Jun Max Shen, 2020. "Product Sourcing and Distribution Strategies under Supply Disruption and Recall Risks," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 9-23, January.
    15. Stephen Sullivan & Diana Garza, 2021. "Supply Chain Risks, Cybersecurity and C-TPAT, a Literature Review," RAIS Conference Proceedings 2021 0082, Research Association for Interdisciplinary Studies.
    16. Liu, Zhongyi & Li, Mengyu & Zhai, Xin, 2022. "Managing supply chain disruption threat via a strategy combining pricing and self-protection," International Journal of Production Economics, Elsevier, vol. 247(C).
    17. Garvey, Myles D. & Carnovale, Steven, 2020. "The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation," International Journal of Production Economics, Elsevier, vol. 228(C).
    18. Issam Laguir & Sachin Modgil & Indranil Bose & Shivam Gupta & Rebecca Stekelorum, 2023. "Performance effects of analytics capability, disruption orientation, and resilience in the supply chain under environmental uncertainty," Annals of Operations Research, Springer, vol. 324(1), pages 1269-1293, May.
    19. David Simchi-Levi & William Schmidt & Yehua Wei & Peter Yun Zhang & Keith Combs & Yao Ge & Oleg Gusikhin & Michael Sanders & Don Zhang, 2015. "Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain," Interfaces, INFORMS, vol. 45(5), pages 375-390, October.
    20. Lu, Mengshi & Huang, Simin & Shen, Zuo-Jun Max, 2011. "Product substitution and dual sourcing under random supply failures," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1251-1265, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:283:y:2019:i:1:d:10.1007_s10479-017-2452-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.